Unlock Your Mortgage Potential as an Umbrella Company Contractor

07 May 2024

As a highly skilled contractor operating through an umbrella company, you’ve adapted to the pressures of IR35; you’ve taken control of your earnings potential.

But navigating the mortgage landscape can be a complex journey. Traditional high street lenders at branch and call-centre levels often struggle to understand the nuances of your employment status.

This is where the expertise of an independent mortgage broker like Freelancer Financials proves invaluable. The team can open doors that may once have seemed closed to umbrella employees.

The challenges of securing a mortgage as an umbrella company contractor

The umbrella company model offers numerous advantages, including simplified tax compliance and a reduced administrative burden. But it can and does create hurdles when seeking a mortgage.

Traditional lenders are accustomed to evaluating applications from “permies”: employees with straightforward income streams. Unfortunately, umbrella contractors’ structures are more complex, with income derived from multiple sources and subject to various deductions.

While well-meaning, in-branch advisors at high street lenders often lack the specialised knowledge required to assess mortgage affordability accurately.

Your payslips, which you may have thought would simplify the process, don’t. Rather, they can confuse matters, as they don’t resemble the familiar PAYE format advisors typically process.

SmartWork’s partnership with Freelancer Financials: get the benefit of experience

To address these problems, SmartWork has partnered with Freelancer Financials, an award-winning mortgage broker specialising in contractors’ unique needs and complexities. As a truly independent broker, it can offer impartial advice and approach any lender in the UK market.

Established in 2004, it’s expert broking team understands the intricacies of umbrella company employment. This ensures they can present your mortgage application in the best possible light.

Freelancer Financials has built its reputation on securing competitive interest rates and favourable terms for its clients. This is your chance to turn that experience to your advantage. Let its brokers help you secure the mortgage best suited to your needs and long-term financial goals.

Borrow against your day rate for your next mortgage

The biggest difference between Freelancer Financials and high street lenders is that its brokers assess your mortgage affordability on your day rate, not your payslips. The amount you can borrow for your new home or a remortgage, therefore, reflects your true earnings potential.

One of the pioneers of “day rate” mortgages for contractors, Freelancer Financials has built solid relationships with lenders that adapted their lending criteria to recognise contractor’s real earnings.

Consequently, its clients gain access to lenders who are well-versed in the nuances of contractor mortgages. So, no more blank looks; no more, “computer says no”.

These lenders recognise the stability and earning potential of your profession. They can now accurately evaluate your affordability based on your gross contract rate, not post-tax income.



Expert guidance and tailored support

Working with Freelancer Financials, you’ll benefit from the team’s personalised approach. The brokers take time to understand your unique circumstances. A small thing, but it ensures that your application is tailored to your specific needs and financial situation.

Your manager and admin support will guide you through the process, explaining the documentation they need to present your income in a way lenders understand. This includes highlighting factors that traditional lenders may overlook your:

  • industry experience,
  • contract history, and
  • future earning potential.

Trusted by the industry; loved by clients

Freelancer Financials has won numerous industry accolades for its innovative approach to contractor mortgages and its commitment to exceptional customer service.

These include winning:

  • Top-performing Mortgage Broker in the Mortgage Intelligence Awards for ten consecutive years and
  • Best Contractor Mortgage Provider at the Contracting Awards twice in the last three years.

Perhaps more importantly, their own clients have given them over 900 5-star reviews on Google and Facebook.

Unlock your mortgage potential

Whether you are upsizing, coming to the end of a fixed-term deal, or just dipping your toes in the housing market, talk to the experts in umbrella company contractor mortgages.

Begin by completing the contact form, calling 020 8421 7999, or filling out Freelancer Financials’ full mortgage quote form. You’ll be in safe hands.